EXHIBIT 99.1

                            [LETTERHEAD OF NEXELL]

[LOGO]
NEXEL


FOR IMMEDIATE RELEASE
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                                         Contact: William A. Albright, Jr.
                                                  (949) 470-6485 or
                                                  Wayne Tyo
                                                  (949) 470-6573
                                                  Nexell Therapeutics Inc.

                  NEXELL THERAPEUTICS CLOSES DEAL WITH BAXTER

         Company Positioned to Move Forward with Therapeutics Business

IRVINE, CA  - September 5, 2001 - Nexell Therapeutics Inc. (Nasdaq: NEXL)
announced today the closing of its previously announced transaction with Baxter
Healthcare Corporation.  Baxter now has worldwide sales, marketing and
distribution rights and responsibilities for Nexell's cell processing products,
including the Isolex(R) 300i Magnetic Cell Selection System.

"Baxter's global presence and extensive experience in transfusion therapy can
provide solid market support for Nexell's cell processing systems," said William
A. Albright, Jr., President and Chief Executive Officer, Nexell Therapeutics.
"Closing this transaction was a substantial step in our strategic plan to focus
Nexell on the development of cellular therapeutics based on adult stem cells and
our proprietary technology."

Under the terms of the agreements, Baxter has acquired certain assets and
liabilities of Nexell's cell processing systems sales, marketing and
distribution business, as well as worldwide sales, marketing and distribution
rights for the related products, for an estimated net purchase price of $4.3
million and royalties on future product sales.  Approximately $2.6 million of
the estimated purchase price was paid at closing, with an adjustment to occur
after certain final calculations, most of which are expected to occur within 60
days of closing.  To facilitate an orderly transfer of the business, Nexell and
Baxter have provided for a transition phase during which Baxter will reimburse
Nexell for certain expenses.   Baxter will retain most of Nexell's current sales
and marketing personnel for the cell processing systems distribution business.
Nexell plans to retain a staff of approximately 25 employees focused on pre-
clinical and clinical research and development of cellular therapies.

Nexell currently intends to pursue pre-clinical and clinical development of two
lead programs.  The chronic granulomatous disease program is developing a
proprietary cellular therapy, utilizing the Isolex(R) 300i Magnetic Cell
Selection System, to produce a stem cell transplant to treat a rare, life-
threatening inherited blood disorder.  The colorectal cancer vaccine development
program relies on the Company's expertise in cell processing, its dendritic cell
technology and proprietary antigens to develop new therapies


for cancer patients. In the long-term, Nexell seeks to develop broad commercial
applications of adult stem cell therapies for a range of significant diseases
based on its proprietary positions in CD34+ hematopoetic stem cells and in cell
processing technology.

Nexell Therapeutics Inc.
Located in Irvine, California, Nexell Therapeutics Inc. (Nasdaq: NEXL) is a
biotechnology company that is focused on the modification or enhancement of
human immune function and blood cell formation utilizing adult hematopoietic
(blood-forming) stem cells and other specially prepared cell populations.
Nexell is developing proprietary cell-based therapies that address major unmet
medical needs, including treatments for genetic blood disorders, autoimmune
diseases, and cancer.

This release contains forward-looking statements regarding future projects,
products and revenues, which statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from current
expectations.  Such risks and uncertainties include: marketing and sales of cell
processing products by Baxter; success of the Company's pre-clinical and
clinical development programs; ability of the Company to finance continued
operations; competition in the cell processing and cellular therapies
businesses; and any additional factors described from time to time in the
Company's filings with the SEC. These forward-looking statements represent the
Company's judgment as of the date of this release.  The Company disclaims any
intent or obligation to update these forward-looking statements.

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